I have a strong stomach for short-term losses. I just need a system with the highest statistical likelihood for realistic long-term growth.
Emergency Fund (Always):
6-12 months of expenses (with maybe 3/4 of it in a refundable HYSA/GIC/CD without penalties)
Checking Account (Always):
1 month of expenses (include the remaining 1/4 of the emergency fund to avoid overdraft)
Investing (40-year Period):
Everything else into investing until I buy a house.
Stocks Allocation: 70% VTI, 30% VXUS
VTI to VOO and back for tax-loss harvesting without wash sale.
Bonds: BND (Full Market Bond ETF)
Year 10: 90/10 stock-to-bond allocation
Year 20: 80/20 stock-to-bond allocation
Year 30: 60/30 stock-to-bond allocation
Year 40: 60/40 stock-to-bond allocation
House (30-year Period):
When I plan to buy a house (likely 10 years in), I will put the down payment in a HYSA/GIC/CD if I plan to buy within less than five years.
I will use the Primary/Principal Residence benefit to save on taxes and pay a mortgage instead of rent when I can afford the house to save on rent costs.
Part of my savings will go into the mortgage and the rest will go into investing.
Submitted April 13, 2023 at 07:39AM by illusiveconsistence https://ift.tt/oWJ5Cly
